Case Study: Carbon Footprint and Stranded Asset Risk

Over time, a leading power supplier recognized critical gaps in its risk management strategy—specifically around exposures that had no available commercial insurance solutions. Three risks stood out: regulatory risk, carbon footprint liability, and stranded asset exposure.

The urgency of these gaps became clear during the Great Texas Freeze in February 2021, when state regulators forced providers to supply power at fixed rates—regardless of soaring wholesale costs. One supplier lost millions in just days.

This event served as a wake-up call, revealing just how vulnerable the company was to uncovered, enterprise-level risks.